Correlation Between HUMANA and Alger Global
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By analyzing existing cross correlation between HUMANA INC and Alger Global Growth, you can compare the effects of market volatilities on HUMANA and Alger Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HUMANA with a short position of Alger Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and Alger Global.
Diversification Opportunities for HUMANA and Alger Global
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUMANA and Alger is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and Alger Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Global Growth and HUMANA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HUMANA INC are associated (or correlated) with Alger Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Global Growth has no effect on the direction of HUMANA i.e., HUMANA and Alger Global go up and down completely randomly.
Pair Corralation between HUMANA and Alger Global
Assuming the 90 days trading horizon HUMANA INC is expected to under-perform the Alger Global. But the bond apears to be less risky and, when comparing its historical volatility, HUMANA INC is 1.48 times less risky than Alger Global. The bond trades about -0.04 of its potential returns per unit of risk. The Alger Global Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,023 in Alger Global Growth on September 1, 2024 and sell it today you would earn a total of 341.00 from holding Alger Global Growth or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.64% |
| Values | Daily Returns |
HUMANA INC vs. Alger Global Growth
Performance |
| Timeline |
| HUMANA INC |
| Alger Global Growth |
HUMANA and Alger Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and Alger Global
The main advantage of trading using opposite HUMANA and Alger Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, Alger Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alger Global will offset losses from the drop in Alger Global's long position.| HUMANA vs. NI Holdings | HUMANA vs. Naked Wines plc | HUMANA vs. Kinsale Capital Group | HUMANA vs. Diageo PLC ADR |
| Alger Global vs. Alger Midcap Growth | Alger Global vs. Alger Midcap Growth | Alger Global vs. Alger Mid Cap | Alger Global vs. Alger Small Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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